HGS Announces Q4 And Full-Year Results For FY 2018

Hinduja Global Solutions (HGS) announced its unaudited Fourth Quarter and Full-Year Results for FY2018.

Speaking on the results, Partha DeSarkar, CEO of HGS said: “HGS continued its growth momentum in the fourth quarter of FY2018. Topline grew by 6.8 % (in rupee terms) y-o-y to cross Rs. 10,000 million in a single quarter for the first time.

This was driven primarily by robust performance in the Healthcare vertical, which contributed over 50% of overall revenue for the second quarter in a row. Q4 margins were muted due to the one-time costs of the acquisitions while PAT was impacted by a one-time exception charge.

For the full year, HGS generated a top line of Rs. 38,494 million, a growth of 3.7 % (in rupee terms) and 6.6% in constant currency terms. Although there has been softening of EBITDA margins in FY2018 due to the performance of the UK and India Domestic business, PAT for FY2018 grew by 7.2 % due to lower depreciation, interest and tax costs. We had some large wins from new logos especially in the second half of FY2018, which will provide a strong base for revenue growth in FY2019.

HGS continues to invest in building capabilities, especially in growth areas such as healthcare and digital, as evinced by our recent acquisitions. The integration of these acquisitions made in early April is on track.

In terms of outlook, we expect to post strong topline growth in the new fiscal, based on the visibility we have from new wins and a healthy pipeline. We do, however, expect some adverse impact from the recent minimum wage hikes on the India domestic business.”